Business Licenses in Cyprus

When establishing a company in Cyprus, obtaining a business license is essential depending on the planned type of activity. Licensing in Cyprus ensures the company’s legal operation, protects the interests of clients and partners, and guarantees compliance with regulatory requirements set for various industries.

Each business license in Cyprus serves as a “quality mark,” confirming that a company meets high standards. However, licensing requirements vary by industry.

In this article, we will examine the key aspects of obtaining licenses in Cyprus and outline specific requirements for different business sectors.

Key Aspects of Licensing in Cyprus

Obtaining a business license in Cyprus is a process that requires attention to detail, patience, and the right approach. When applying for a business license, there are three key aspects to consider:

1. Industry Requirements

If your business requires a license in Cyprus, the first step is preparing a “reputation dossier,” which serves as a key argument in favor of granting the license. This dossier includes proof of your business experience, which is particularly important for regulated industries. Recommendations from partners or clients can also play a significant role in demonstrating your professionalism.

Additionally, if your business requires specialized knowledge or skills, you will need certifications proving your team’s qualifications. For example, brokerage firms must employ staff with financial licenses, while pharmaceutical businesses require a pharmacist’s diploma or a contract with a certified specialist.

The stricter the industry requirements, the more emphasis will be placed on your professional experience. It is essential to plan ahead and prepare the necessary documents to ensure a smooth licensing process.

2. Preparation of Premises and Employees

Licensing in Cyprus is not only about qualifications but also about ensuring proper operational conditions. Many industries require strict compliance with standards, from sanitary regulations for restaurants to safety measures for educational institutions.

For example, opening a restaurant or café requires a health permit confirming that the kitchen meets strict hygiene standards. The premises must be properly equipped, and employees must undergo food safety training. Businesses dealing with alcohol or pharmaceuticals face additional requirements, including licenses for both the business and the premises. Stores selling alcohol, for instance, must be located at a certain distance from schools and churches.

Properly preparing your premises and employees in advance helps avoid delays in obtaining the license and allows you to start operations more quickly.

3. Time Management

Business licensing in Cyprus requires patience and an understanding of timelines. The duration of the process depends on the complexity of your industry. Obtaining an educational license, for example, may take several months, while a restaurant or café permit can take up to six months.

Financial companies, investment funds, and brokerage firms undergo particularly strict oversight by the Cyprus Securities and Exchange Commission (CySEC). These businesses must meet requirements regarding employee qualifications, sufficient capital, a clear corporate structure, and transparent financial reporting. The licensing process for such companies can take anywhere from six months to a year.

It is advisable to factor in these timelines in your business plan to avoid unexpected delays. Regulatory bodies may also request additional documentation or corrections, which can extend the process.

These are the key factors to consider when planning business licensing in Cyprus. A well-prepared and strategic approach significantly increases the chances of obtaining all necessary permits in a timely manner.

Main Business Licenses in Cyprus

Cyprus offers a wide range of licenses and permits required for conducting business. Depending on the industry, entrepreneurs may need a basic business permit or specialized licenses to comply with industry regulations. Below are the most in-demand licenses for businesses in Cyprus:

Street Trade Permits in Cyprus

If you plan to sell food products or clothing, you must obtain a permit from the local municipality. This includes submitting an application, paying the required fee, and obtaining approval for a designated trading location (a copy of the rental agreement for the trading space is required). Municipalities strictly regulate not only working hours but also the type of goods allowed for sale. The trading spot must meet sanitary standards, including access to water and waste disposal facilities. It is advisable to check local regulations in advance, as they may vary by region.

Alcohol and Tobacco Sales License

A special license from the Ministry of Commerce of Cyprus is required for selling alcohol or tobacco products. Key requirements include:

• The store or establishment must be located at a specified distance from schools, hospitals, or churches.
• Special storage areas for alcohol must be protected from direct sunlight.
• If alcohol is sold in restaurants or bars, an additional catering permit is required.

Pharmaceuticals and Medical Equipment Licensing

Entrepreneurs planning to open a pharmacy or sell medical products must obtain a license from the Ministry of Health of Cyprus. Requirements include:

• A pharmacist’s diploma or a contract with a certified pharmacist to work in the pharmacy.
• A floor plan indicating designated storage areas for medications.
• Proper ventilation, refrigerators for temperature-sensitive medications, and certified storage equipment.

Since the licensing process can take several months, it is essential to prepare all necessary documentation in advance and ensure compliance with the health regulations.

Main Licenses for Restaurants and Cafés

Restaurants and cafés require multiple licenses:

• A catering license from the local municipality, confirming that the establishment meets sanitary and fire safety regulations and is approved for use as a restaurant or café.
• A health and sanitation certificate to ensure kitchen areas are properly designated, such as for food preparation and dishwashing.
• An alcohol license if alcoholic beverages are sold.
• Night operation permits may be required if the establishment operates 24/7, as residential areas may have restrictions on operating hours.

Licenses for Educational Institutions: Schools, Courses, and Training Centers

Private educational institutions, including schools, language courses, and training centers, must obtain approval from the Ministry of Education of Cyprus.

• A detailed description of the educational programs is required to confirm compliance with educational standards.
• Teachers and instructors must hold qualification certificates to verify their professional expertise.
• The facility must meet safety and sanitary regulations, and the submitted floor plan must indicate emergency exits and designated learning areas.

Licensing for Tourism and Hospitality Businesses

Tourism is a key sector of the Cypriot economy, and businesses operating in this field must comply with strict standards. To open a hotel, travel agency, or tour company, a certification from the Cyprus Tourism Organization (CTO) is required.

If the business involves renting cars, boats, or yachts, an additional permit from the Cyprus Transport Department is necessary. Requirements include:

• Registration of the vehicle or vessel.
• Technical certificates confirming that the transport is in good condition.
• Insurance coverage for the rented equipment.

Licensing for Investment Companies

If you plan to operate as a broker or launch an investment fund, your primary regulatory body is the Cyprus Securities and Exchange Commission (CySEC). This organization oversees the activities of investment firms, ensuring transparency and compliance with EU standards. Licensing in this sector requires extensive preparation, as the regulator evaluates all aspects of the business, including: the company’s reputation and employee qualifications, financial stability and sufficient working capital, a detailed business plan outlining the company structure, objectives, services offered, and risk management measures.

Investment companies must also: employ highly qualified specialists with relevant financial education and experience in the investment sector, submit regular reports to CySEC, disclose financial statements, and undergo audits.

If you are unsure whether your business requires a license or permit in Cyprus, feel free to contact us. We assist clients at every stage of the licensing process, from consultation and document preparation to obtaining approvals and ensuring regulatory compliance!

Process of Obtaining a Business License in Cyprus

The application process for a business license in Cyprus consists of the following steps:

Step 1: Assessing Legal Requirements

Before applying for a license, it is essential to identify all legal requirements and compliance standards relevant to your industry. Some types of businesses may require minimum share capital, regular financial reporting, or compliance with international regulations. Understanding these requirements will help streamline the licensing process and prevent delays or rejections.

Step 2: Preparing the Documents

To submit a license application in Cyprus, a comprehensive set of documents is required. These typically include:

• Resumes and qualification certificates of key personnel.
• Financial statements demonstrating the company’s financial stability.
• Corporate documents detailing the management structure and list of shareholders.
• Evidence of professional experience of directors and key officers.
  For certain industries, such as financial services, additional documents may be needed to demonstrate compliance with international standards, including AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations.

Step 3: Submitting the Application

The application is submitted to the relevant regulatory authority in Cyprus, such as:

• CySEC (Cyprus Securities and Exchange Commission) – for financial services and investment companies.
• CBC (Central Bank of Cyprus) – for banking and financial institutions.
• NBA (National Betting Authority) – for gaming and betting businesses.
  The review process can take anywhere from a few weeks to several months, depending on the complexity of the license and industry regulations. Additionally, government fees must be paid upon submission, with amounts varying depending on the type of license.

Step 4: Compliance Inspection

Once the documents are submitted, the regulatory authority conducts a thorough compliance review to ensure the company meets safety, financial transparency, and industry-specific regulations.

Step 5: Receiving the License

Upon successful completion of the review process, the company is granted a business license in Cyprus, officially confirming compliance with all legal requirements. Holding a valid license allows the company to operate legally and securely in Cyprus.

Obtaining a business license in Cyprus is a structured process that requires careful preparation. To avoid delays, it is crucial to understand the regulatory requirements for your industry, prepare and submit all necessary documentation in compliance with local laws, allocate sufficient time for the approval process.

Legal Services for Obtaining a Business License in Cyprus

The legal experts at Feod Group provide professional assistance in obtaining a business license in Cyprus for various types of businesses. Our team will help you prepare all necessary documents, navigate the licensing process, and ensure full compliance with legal requirements.

Our Services Include:

✔ Assistance in choosing the legal structure of the company, preparation of founding documents, and company registration.
✔ Consultations on licensing – analyzing your business to determine which licenses and permits are required.
✔ Preparation and submission of documents – compiling a complete set of documents that meet regulatory requirements.
✔ Liaising with government authorities – handling the licensing process with CySEC, the Ministry of Commerce, CTO, the Transport Department, municipalities, and other regulatory bodies.
✔ Development of business plans and internal procedures – preparing documentation required for licensed companies.
✔ Legal support throughout the licensing process – ensuring regulatory compliance and protecting the client’s interests.

Contact us for a consultation to learn more about how to obtain a business license in Cyprus and the advantages it can bring to your company!

Our office in Larnaca is open for you!